TD Research discusses the JPY outlook and suspects that USD/JPY is nearing a top alongside CHF/JPY around 114.
"We discuss JPY's so-called global haven status. We feel it's a misnomer that has more to do with Japanese repatriation. The GPIF has also likely been rebalancing foreign equity exposure ahead of yearend while the collapse in US equities has left them under-allocated to benchmarks," TD notes.
"Our month-end positioning model leans short JPY, but we suspect that USDJPY is nearing a top alongside CHFJPY around 114," TD adds.